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Ethereum kingpin Consensys says it has 'ample cash' amid whispers of investor talks

Quick Take

  • Consensys has held talks with potential investors in recent weeks, according to several people familiar with the matter.
  • But a spokesperson for the Ethereum developer said it doesn’t need cash and isn’t formally fundraising. 
  • In fact, they added that Consensys has been hoovering up its own “significantly undervalued” shares on the secondary market. 

Consensys, the Ethereum developer behind MetaMask, held talks with investors over the summer about a potential capital injection. But the company insists it doesn’t need money and isn’t actively fundraising.

The blockchain firm has met with multiple investors about fundraising in recent weeks, according to four people familiar with the matter.

Consensys last raised capital in early 2022 in a $450 million Series D round led by ParaFi Capital that valued the startup at $7 billion. Deep-pocketed backers like SoftBank Vision Fund 2, Temasek and Microsoft also participated.

A Consensys spokesperson brushed off the talks, stating that while the startup sometimes considers “inbound investor interest,” it still has plenty of cash.

“Consensys has been widely perceived as the winner after the debacles of 2022,” the spokesperson said.

“Consequently, the company has experienced a significant influx of inbound investor interest, fueled in part by inaccurate reporting on the secondary market activity in our stock earlier this year,” the spokesperson continued, adding that the company doesn’t need money and is “not actively engaged in a formal process.” 

Asked about those inaccuracies, the spokesperson clarified that secondary markets represent “a tiny fraction” of transactions in Consensys stock. 

Secondary market discounts

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